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Flint State Rep. Jim Ananich proposes tax abatement repayment for GM, other companies who outsource jobs

Jeremy Allen | By Jeremy Allen |
on February 06, 2013 at 4:25 PM

Jim Ananich.jpg State Rep. Jim Ananich, D-Flint

FLINT, MI – As a response to the Feb. 5 announcement that the former Delphi Flint East plant will close, and with word the work will move to Mexico, State Rep. Jim Ananich, D-Flint, has introduced a bill proposing elimination of tax abatements for corporations that outsource jobs.

Ananich’s proposed bill -- a reintroduction of HB 4395 of 2012 -- would require corporations that ship jobs out of the state to repay taxpayers the tax breaks the corporation received in Michigan.

“I’m tired of seeing corporations take our hardworking taxpayers' money and run,” said Ananich. “It’s up to them to decide whether or not to ship jobs to Mexico or China, but this bill will make sure they don’t use our tax dollars to do it.”

Tom Lenard, a spokesman from Ananich's office, said that with a Republican-heavy Legislature, he doesn't expect the bill to be passed. But he hopes that it will influence conversation and make businesses more accountable for taking taxpayers money.

“I think it's a balance that you have to strike. We want the ripple effect of the opportunities that companies create by creating jobs and having workers spend money at surrounding establishments, but we also want them to know that they can't just take taxpayers' money and leave,” Leonard said.

GM and Delphi officials said the plant will cease operations in November 2013 and employee layoffs will begin as early as March. The plant is expected to offer recalls to 50 of the 287 hourly employees, while the remaining 237 employees will be given unemployment and supplemental pay for about six months, and just over a year of paid benefits.

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